Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 17, Problem 3PA
Subpart (a):
To determine
Relevance of oligopoly market.
Subpart (b):
To determine
Relevance of oligopoly market.
Subpart (c):
To determine
Relevance of oligopoly market.
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This chapter discusses companies that are oligopolists in the market for the goods they sell. Many of the same ideas apply to companies that are the market for the inputs they buy. a. If sellers who are oligopolists try to increase the price of goods they sell, what is the goal of buyers who are oligopolists in oligopolists? b. Major league baseball team owners have an oligopoly in the market for baseball players. What is the owners' goal regarding players' salaries? Why is this goal difficult to achieve? c. Baseball players went on strike in 1994 because they would not accept the salary cap that the owners wanted to impose. If the owners were already colluding over salaries, why did they feel the need for a salary cap?
This chapter discusses companies that are oligopolists in the market for the goods they sell. Many of the same ideas apply to companies that are oligopolists in the market for the inputs they buy. If sellers who are oligopolists try to increase the price of goods they sell, the goal of buyers who are oligopolists is to try to decrease the prices of goods they buy.
Major league baseball team owners have an oligopoly in the market for baseball players.
The owners' goal is to keep players' salaries .
True or False: This goal is difficult to achieve because teams can attract better players with higher salaries.
True
False
Baseball players went on strike in 1994 because they would not accept the salary cap that the owners wanted to impose.
True or False: The owners felt the need for a salary cap to help prevent any team from cheating.
True
False
Attempts
6. Oligopolies
This chapter discusses companies that are oligopolists in the market for the goods they sell. Many of the same ideas apply to companies that are
oligopolists in the market for the inputs they buy. If sellers who are oligopolists try to increase the price of goods they sell, the goal of buyers who are
oligopolists is to try to decrease the prices of goods they buy.
Major league baseball team owners have an oligopoly in the market for baseball players.
The owners' goal is to keep players' salaries.
Keep the Highest/3
True or False: This goal difficult to achieve because baseball players demand more money.
O True
O False
Baseball players went on strike in 1994 because they would not accept the salary cap that the owners wanted to impose.
True or False: The owners felt the need for a salary cap to help prevent any team from cheating.
O True
O False
Chapter 17 Solutions
Principles of Microeconomics (MindTap Course List)
Ch. 17.1 - Prob. 1QQCh. 17.2 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17 - Prob. 1CQQCh. 17 - Prob. 2CQQCh. 17 - Prob. 3CQQCh. 17 - Prob. 4CQQCh. 17 - Prob. 5CQQCh. 17 - Prob. 6CQQCh. 17 - Prob. 1QR
Ch. 17 - Prob. 2QRCh. 17 - Prob. 3QRCh. 17 - Prob. 4QRCh. 17 - Prob. 5QRCh. 17 - Prob. 6QRCh. 17 - Prob. 7QRCh. 17 - Prob. 1PACh. 17 - Prob. 2PACh. 17 - Prob. 3PACh. 17 - Prob. 4PACh. 17 - Prob. 5PACh. 17 - Prob. 6PACh. 17 - A case study in the chapter describes a phone...Ch. 17 - Prob. 8PACh. 17 - Prob. 9PA
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Similar questions
- This chapter discusses companies that areoligopolists in the markets for the goods they sell.Many of the same ideas apply to companies that areoligopolists in the markets for the inputs they buy.a. If sellers who are oligopolists try to increase theprice of goods they sell, what is the goal of buyerswho are oligopolists?b. Major league baseball team owners have anoligopoly in the market for baseball players. Whatis the owners’ goal regarding players’ salaries?Why is this goal difficult to achieve?c. Baseball players went on strike in 1994 becausethey would not accept the salary cap that theowners wanted to impose. If the owners werealready colluding over salaries, why did they feelthe need for a salary cap?arrow_forwarda. In an oilgopoly, the price effect is: the Increase in price from lowering the quantity sold. the increase in total revenue due to the money brought in by the sale of additional units. the Increase in output that comes from raising the price. the decrease in total revenue that occurs because the increase in quantity will push the market price down. b. In an oligopoly, the quantity effect is: the increase in price from lowering the quantity sold. the decrease in total revenue that occurs because the increase in quantity will push the market price down. the increase in output that comes from raising the price. the increase in total revenue due to the money brought in by the sale of additional units. c. In an oilgopoly, when the quantity effect outweighs the price effect: a decrease in output may Increase the firm's profits. an increase in output may increase the firm's profits. keeping output constant and raising price will increase the firm's profits. keeping output constant and…arrow_forwardDiscuss why a producer in an oligopolist market ("few" competitors) will pay closer attention to their competitors than a producer in a highly competitive market ("many" competitors).arrow_forward
- Will the firms in an oligopoly act more like a monopoly or more like competitors?arrow_forwardWhat are monopolies and oligopolies? How do they tend to differ from businesses in a market where there is free-market competition? Why do they exhibit such differences?arrow_forwardReferring to the diagram, the monopolist will charge a price of ______ and sell quantity of _______arrow_forward
- What do economists mean when they say that competitive markets are more efficient than monopolistic markets? Monopolistic markets result in lower price and higher production Competitive markets result in lower prices, monopolistic market result in higher production Competitive markets result in lower costs, lower prices, and higher levels of production Easy entry and exitarrow_forwardWhy do oligopolies exist? List five or six oligopolists whose products you own or regularly purchase. What distinguishes oligopoly from monopolistic competition? which relate to measures ofarrow_forwardMany European governments are reluctant to allow online betting in an attempt to protect their national gambling businesses. A recent study found that seven countries out of the 27 in the European Union banned online gambling. Of the other 20 only 13 have opened their markets to competition; in the rest gambling is dominated by monopolies owned or licensed by the government. In the Netherlands, for example, residents can only place online bets with a state monopoly: De Lotto. The Ministry of Justice even warned banks in the country that they could be prosecuted if they transferred money to online gambling companies. Other countries have ordered online betting companies to block access to their sites. Their governments argue that this is to protect people from gambling excessively. However the revenue they gain from their own monopolies should not be ignored as a possible motive. Questions If governments believe that gambling is bad for their citizens then in economic terms how would…arrow_forward
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